FREEHOLD PRIME RETAIL INVESTMENT169/175 HIGH STREET, SOUTHEND-ON-SEA

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INVESTMENT SUMMARY

• Prime retail investment with good assetmanagement potential.

• Let to The Works and Muffin Break.• Freehold interest subject to 3 occupational

leases.• Offers in order of £1,400,000.• Net initial yield of 7% reflecting purchaser’s

costs of 6.05%.

SOUTHEND-ON-SEASouthend-On-Sea is a major seaside resort and commuter town andrepresents one of the major commercial hubs in Essex. Touristattractions include the longest pier in the world at 1.34 miles long.

The town is located 42 miles east of Central London, 20 miles south ofChelmsford and 41 miles south east of Colchester.

The town has excellent road, rail and air connections, with the A127linking the town to London via the A13, Chelmsford via the A130 andthe M25.

The town is served by two main national rail stations, with SouthendVictoria providing regular services into London Liverpool Street inapproximately 1 hour and Southend Central providing services intoLondon Fenchurch Street in 50 minutes.

Southend also has its own airport approximately 1.5 miles north of thetown centre. The airport provides connections to many Europeandestinations.

169/175 HIGH STREET, SOUTHEND-ON-SEA

LOCATIONThe Property is located in a prime position on the western side of the HighStreet close to the Victoria Plaza Shopping Centre. Multiple retailers in theimmediate vicinity include Card Factory, Costa, Holland & Barrett, Savers,Loungers, WHSmith, Sports Direct, Clintons and HMV.

The location is indicated on the Goad plan extract.

RETAIL IN SOUTHEND-ON-SEASouthend offers an extensive retail offering, comprising of a longpedestrianised High Street and two shopping centres; The Royals ShoppingCentre at the southern end of the High Street and Victoria Plaza Centre at thenorthern end.

The Royals Shopping Centre offers 280,000 sq.ft. and is anchored byDebenhams, Primark and TK Maxx with other retailers including H&M,Pandora, BrightHouse and Hotter Shoes.

Victoria Plaza Centre offers 390,000 sq.ft. and is anchored by Next, Wilko,New Look and Metro Bank. Other retailers include Peacocks, Warren Jamesand Snappy Snaps.

169/175 HIGH STREET, SOUTHEND-ON-SEA

BRIEF DESCRIPTION

The property is of brick construction beneath a pitched roof at the front with a flat roof tothe rear. The first and second floor above 169/171 High Street and the second floorabove 173/175 High Street have been sold off to a residential developer. The Works unittherefore comprises of ground and basement floors offering the following approximatedimensions:-

ACCOMMODATION

ASSET MANAGEMENT

There is potential to re-gear and extend the lease to Muffin Break and possibly take asurrender of the 1st floor, which has separate access onto the flat roof at the rear, to createanother residential unit, subject to the usual consents.

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The Muffin Break shop is arranged over ground, basement and 1st floor having the followingdimensions and areas:-

169/171 High Street

Floor Use sq.ft. sq m

Basement Ancillary 903 83.9

Ground Sales 1,902 176.7

ITZA 747 units

TOTAL 2,805 260.6

173/175 High Street

Floor Use sq.ft. sq m

Basement Ancillary 1,021 94.9

Ground Sales 1,435 133.3

ITZA 698 units

First Floor Ancillary 492 45.7

TOTAL 2,948 273.9

169/175 HIGH STREET, SOUTHEND-ON-SEA

MUFFIN BREAKTHE WORKS

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TENANCIES

169 / 171 High Street – C 65173 / 175 High Street – E 120

EPCs

173/175 High Street is let on an effective FRI lease to Foodco UK LLP fora term of 10 years from 9th November 2015 to expire on the 8th November2025 at a rent of £50,000 per annum exclusive. The rent is subject to anupwards only rent review on 9th November 2020. There is a tenant onlybreak option on 8th November 2020.

169/171 High Street is let on an effective FRI lease to The WorksStores Ltd for a term of 10 years from 23rd September 2015 to expire on22nd September 2025 at a rent of £55,000 per annum exclusive. Therent is subject to an upwards only rent review on 23rd September 2020.

The lease has been re-geared to remove the tenant break clause in2020 in exchange for 6 months rent-free commencing from 29th

September 2017. The vendor will top up the remaining rent-free at thetime of sale.

RESIDENTIAL SPACEThe first and second floor of 169/171 and second floor over 173/175 havebeen sold to a residential developer on a 999 year lease at a peppercornrent.

169/175 HIGH STREET, SOUTHEND-ON-SEA

MUFFIN BREAK

Food Co LLP trading as Muffin Break (Co no OC301010) is a fastgrowing brand and has approximately 60 stores in the UK and islooking to expand by another 15 in the coming 12 months. Thecompany operates over 350 stores worldwide.

For the year ended 30th June 2016 they had a turnover of £6.67 millionand an Experian credit rating of ‘low risk’.

THE WORKS

The Works Stores Ltd (Co no 06557400) is a well established national book andstationery retailer having in the region of 375 stores in the UK and Ireland.

For the year ended 1st May 2016 they reported a turnover in excess of £154 millionand a pre-tax profit of £9,796,000 and have an Experian Credit rating ‘belowaverage risk’.

TENANTS COVENANTS

COMMENT ON RENTThis part of Southend High Street is considered prime pitch, being close to the Victoria Plaza Shopping Centre and Southend Victoria Station. Zone A rents inthis vicinity of the High Street have decreased in recent years but did peak at approximately £120 Zone A in 2006. The general rental tone for this part of theHigh Street is in the region of £65 - £70 per sq.ft. Zone A.

We devalue 169/171 High Street to £69 per sq.ft. Zone A and 173/175 High Street to £65 per sq.ft. Zone A with £3.25 per sq.ft. on the basement and 1st floor.

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FREEHOLD PRIME RETAIL INVESTMENT169/175 HIGH STREET, SOUTHEND-ON-SEA

MISREPRESENTATION ACTThese particulars are intended only as a guide to prospective purchasers to enable them todecide whether to make further inquiries with a view to taking up negotiations but they areotherwise not intended to be relied upon in any way or for any purpose whatever andaccordingly neither their accuracy nor the continued availability of the property is in any wayguaranteed and they are furnished on the express understanding that neither the agent northe vendor is to be, or come, under any liability or claim in respect of their contents. Thevendor does not hereby make or give nor does any Partner or employee of Smith Price LLPhave any authority to make or give any representation or warranty whatsoever as regards theproperty or otherwise. Any prospective purchaser or lessee or other person in any wayinterested in the property should satisfy himself by inspection or otherwise as to thecorrectness of each statement contained in these particulars. In the event of the agentssupplying any further information or expressing any opinions to a prospective purchaser,whether oral or in writing, such information or expression of opinion must be treated as givenon the same basis as these particulars. These particulars do not form part of any contractand, except where expressly otherwise stated, offers will be considered only subject tocontract.

Smith Price LLP is a limited liability partnership registered in England and Wales.Registered number: OC318959. Registered office: 5/7 John Princes Street, London W1G 0JN

PROPOSAL

• For the freehold interest subject to the three lettings we are seeking offers in the order of£1,400,000 to show a net initial yield of 7% after allowing for purchasers costs of 6.05%.

• This is an excellent opportunity to purchase a prime retail investment with good assetmanagement potential in a busy seaside town, with secure income until 2025 on part.

• The property is registered for VAT and will be sold by way of a TOGC.

FURTHER INFORMATION

For further information please contact:

John Loveday020 7318 5753johnloveday@smithprice.co.uk

Sam Russell020 7318 5763samrussell@smithprice.co.uk

Subject to Contract

Smith Price LLP, 5/7 John Princes Street, London W1G 0JN

Stephen Powell020 7318 5751stephenpowell@smithprice.co.uk